Final answer:
Adolescents' newfound capacity for self-consciousness can result in an inability to distinguish between reality and fantasy.
Step-by-step explanation:
A limitation of adolescents' newfound capacity for self-consciousness, as described by Elkind, is an inability to distinguish between reality and fantasy. During adolescence, teenagers develop the ability to think abstractly and consider multiple points of view. However, they may struggle with separating their own thoughts and emotions from external reality, leading to confusion between what is real and what is imagined.